Cancen Oil Canada Inc.

Cancen Oil Canada Inc.

January 12, 2013 15:36 ET

Cancen Announces Amendment to Non-Brokered Private Placement Allocation and Appointment of New Director


Cancen Oil Canada Inc. ("Cancen" or the "Corporation") (TSX VENTURE:COI) is pleased to announce the following amendment to the terms of its non-brokered private placement (the "Non-Brokered Private Placement") and the appointment of a new director:

Amendment to Non-Brokered Private Placement Allocation

On December 11, 2012 the Corporation announced that, as part of its Non-Brokered Private Placement, Cancen's new management team and directors would subscribe for up to 3.9 million units ("Units") of the Corporation at a price of $0.38 per Unit. In addition, up to 3.9 million common shares of the Corporation ("Common Shares") would be issued to certain additional subscribers identified by the new management team at a price of $0.38 per Common Share.

On December 28, 2012 the Corporation announced the first closing of the Non-Brokered Private Placement pursuant to which the new management team subscribed for 2,965,366 Units for total proceeds of $1,126,839, and an additional 3,636,393 Common Shares were issued to certain additional subscribers for total proceeds of $1,381,829. The aggregate gross proceeds from the first closing of the Non-Brokered Private Placement were $2,508,668.

Today the Corporation announces that it will allocate the remaining unsubscribed Units available for subscription pursuant to the Non-Brokered Private Placement to the Common Shares portion of the offering, subject to the receipt of all required approvals. Subsequent to this allocation up to 1,294,241 Common Shares will be issued to certain additional subscribers identified by the new management team under the Non-Brokered Private Placement at a price of $0.38 per Common Share for up to $491,812 in gross proceeds.

Director Appointment

Cancen is pleased to announce the appointment of Keith Talbot to the board of directors of the Corporation. Since 2008 Mr. Talbot has been the President and a director of Weslease of Canada Ltd., a private financial services company specializing in equipment lease financing to the Canadian marketplace. From 1986 to1988 Mr. Talbot was the President of Revelstoke Lumber and Hardware, prior to the sale of the business. From 1983 to 1986, Mr. Talbot was the Vice President of Majestic Electronic Superstore, a chain of electronic retail stores. Mr. Talbot was also the founder of a private limited partnership, Cancen Oil Processors Limited Partnership 1, which sold an oil and gas disposal facility to the Corporation at the time the Corporation completed its qualifying transaction in October 2011. The Corporation has agreed to issue Mr. Talbot 500,000 stock options with an exercise price of $0.50 and an expiry date of five years from the date of grant.

Neil McLennan has tendered his resignation as a director effective January 11, 2013. The Board thanks Mr. McLennan for his contributions to the Corporation and wishes him well in his new endeavours.

About Cancen

Cancen is an energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The services provided by Cancen assist these companies with the treatment and sale of crude oil and the handling of by-products associated with oil and natural gas development and production. The services provided by Cancen include crude oil emulsion treatment, oilfield waste processing, and disposal of produced and waste water.

Reader Advisory

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Corporation's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the securities issued pursuant to the Non-Brokered Private Placement. Such statements and information reflect the current view of the Corporation with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on Cancen's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

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